On the subject of overpriced

[NittanyLion]

Now I don't mean to upset anyone with this thread, I really doubt there are many spa manufacturers on the forum, but does anyone else feel spas are really overpriced?  I mean, if you look at the parts that go in versus the sale price, it doesn't even seem close.  9K for a spa thats usually $50 worth of lumber, maybe a couple hundred in pipe/tubing, a couple $250 pumps, some wiring...  I'd be surprised if everything excluding the shell hit $1000, so the shell would have to be 8K, probably more like $500.

I know there are labor costs, advertising, shipping, etc. but its hard to believe an automaker can make a car (much more complicated than a spa) in a foreign country and get it here and sell for 11K and a spa is 9K.  I'm not knocking dealers, and I as a consumer was willing to pay for a spa, just makes you wonder...did all spa makers start out as defense contractors selling to the Pentagon?

With the perceived mfr mark-up it explains why so many brands (albeit not all quality brands), thinking of starting my own sucker line (20hp, 400 jets, disco ball, each seat naughty-part jets, popcorn maker)

[drewstar]

I hear ya Natty. Spas are exspensive.  Dealers here are slow to name prices and costs and overhead, and I can understand that.  

Then with franchises and dealerships, same brand competition is virtually non existent.  Also, Spas are a luxary item and yea, youre going to pay for that too.

Some dealers in here give me the impression it's a tough business,and struggle to compete with the internet, big box stores and new dealerships.  others I get the impression they are doing well. Very well. (Good for them).  
Still others tell me it's the factory/manufactuer that makes the "real" money.    


As a consumer, forums like this are good, we can talk price, features, compare tubs and challenge the dealers, it helps.  

As far as making your own tub....sure. Sounds like the Costco and home depot tubs....not to mention the lunatic in CO.  

[Vinny]

Yes they are IMO!

I can buy a car for $12,000 or bought my spa for $6,700. I purchased it, am happy with it BUT think in the economies of scale - it is WAYYYYY overpriced. But then again there are people buying a same sized MB as my Sonata, paid probably $30,000 more and we all get in the same traffic jam, as we sit in A/C comfort, listening to 6 speaker stereos with our 4 speed transmissions ... you get the point!

BTW, this has nothing to do with dealers unless you artificially inflate the price to buy the above mention MB!

And remember before we all get crazy about MB ... They are Chrysler now!!!!

[rick]

The same goes for grand pianos.   I bought one last year and  many brands cost  more than a new Mercedes.

It all comes down to the luxury item thing.   There are always going to be enough people with the means to buy these things which keeps the cost up.  

Yeah, spas are way overpriced for what it probably costs to make and deliver them.   But what are ya gonna do?  If you want  a tub of hot water to soak in,  you buy one and hope to shave as much as you can off the price.  

[Chas]

And remember before we all get crazy about MB ... They are Chrysler now!!!!

Even my Jeep is a stinkin' Chrysler now.

[drewstar]

folks be glad you didn't buy the Mercedes-Benz AMG CLK-GTR.

It only runs for 10 blocks and MB wont fix it.

http://www.cnn.com/2006/AUTOS/06/14/pricey_lemon/index.html


It's the world most exspensive lemon:




butr then again, I'm sure Chas and all these other dealers can afford two or three of em.  

[MarKee]

There's a lot more costs involved than you listed.  You haven't factored in warranty costs that the manuf. has to absorb.  I bet a $40,000 car only has less than $5000 in raw materials costs, so what's the difference?

[sledjunkie]

Yes they are overpriced.
There should be half as many hot tub manufacturers, and they should cost half a much.

[Vinny]

There's a lot more costs involved than you listed.  You haven't factored in warranty costs that the manuf. has to absorb.  I bet a $40,000 car only has less than $5000 in raw materials costs, so what's the difference?

Exactly my point!

[wmccall]

Another factor, even though the prices are the same, Even Hyundai expects to sell nearly a million cars here this year. How many spas are sold total in the US and Canada each year?  My house has 3 cars, but only one hot tub.

[NittanyLion]

You all make good points, although I disagree that there is only $5000 in raw materials in a car.  As far as cost of metal goes that make be right, but look at all the casting, machining, forming, etc. thats needed for all those thousands of individual parts vs. a tub where all but the shell is basically off the shelf, most of which is available at the home depot.

Once again, not knocking dealers, they work with what they're given, its the manufacturers that I think are laughing all the way to the bank.  Good call though on volume sold wmccall, less volume needs more markup.

By the way, no feedback on the disco ball, the popcorn maker, and the naughty-part jets?  I was serious about those, I'll have to write Thermospas and share with them.

[In Canada eh]

 As far as cost of metal goes that make be right, but look at all the casting, machining, forming, etc

1/2 million each for the front and rear fasia molds, now lets add up the door panels, door handles, ashtray, instrument panel, interior cladding panels etc.etc.etc. My point is that there is alot more than raw materials in a car.

 I would imagine the the cost of a tub mold should be around $250 000. If you factor this into the number produced, well I think you can see my point.

[fatman]

Let's not forget the hot tubs that are directly connected to the stock market by way of their parent companies. Hot Spring for example, they are always under pressure to squeeze out maximum profits while keeping expenses as low as possible. Great for the stockholder, not so great for the average consumer.

[Wisoki]

Yes and charging a nice fat 30% fuel surcharge that goes right into Watkins pocket.

Let's not forget the hot tubs that are directly connected to the stock market by way of their parent companies. Hot Spring for example, they are always under pressure to squeeze out maximum profits while keeping expenses as low as possible. Great for the stockholder, not so great for the average consumer.

[SerjicalStrike]

Costs for labor to to build the spas.  Costs for research and development.  It is amazing the costs involved in designing a new chip for a board.  Marketing, order desk, warranty, and many other departments have to be paid for as well.

The manufacturer has to make a profit and the dealer has to make a profit.

Since none of us know (at least, I don't think any of us know) the budgets and expenses of an entire manufacturing company, it is very hard for us to speculate on wether or not a spa is overpriced.  

9k for a spa doesn't mean it costs 9k to make.